Standard Terms of Business – Corporate
The purpose of this schedule is to set out the standard terms of business that apply to all engagements accepted. All work carried out is subject to these terms except where changes are expressly agreed in writing.
These standard terms of business apply to all types of entities (e.g., companies, LLPs, charities, friendly societies, academies, pension schemes, etc.). Any reference to ‘director’ or ‘company’ should be interpreted as appropriate for the entity type (e.g., partner, trustee, governor, charity LLP, etc.).
1. Professional Obligations
1.1 As required by the Provision of Services Regulations 2009 (SI 209/2999), details of the firm’s professional registrations, including audit registration where applicable, can be found on our website.
1.2 We will observe and act in accordance with the bye-laws and regulations of the Institute of Chartered Accountants in England and Wales, together with their code of ethics. We accept instructions to act for you on this basis. In particular, you give us authority to correct errors made by HM Revenue and Customs where we become aware of them. We will not be liable for any loss, damage, or cost arising from our compliance with statutory or regulatory obligations.
2. Client Monies
2.1 We may, from time to time, hold money on your behalf. Such money will be held in trust in a client bank account, which is segregated from the firm's funds.
2.2 Where you request that such monies be held in a client bank account outside the European Union, please note that these monies are not protected by the EU Deposit Guarantee Scheme.
2.3 We will return monies held on your behalf promptly as soon as there is no longer any reason to retain those funds. In the unlikely event of us holding any unclaimed monies, we reserve the right to pay such monies to a registered charity. We will not do this unless we have been unable to contact you for at least five years and have taken reasonable steps to trace you and return the monies.
3. Fees
3.1 Our fees are computed based on the time spent on your affairs by the principals and our staff, including sub-contractors or consultants where necessary, and on the levels of skill and responsibility involved. Disbursements represent travel, accommodation, and other expenses incurred in dealing with your affairs.
3.2 If it is necessary to carry out work outside the responsibilities agreed with you for each service, we will advise you in advance. Any additional work will involve additional fees. It is in your interest to ensure that your records are completed to the agreed stage.
3.3 Invoices are payable in full (including disbursements) in accordance with the terms set out on the invoice. If you do not accept that an invoiced fee is fair and reasonable, you must notify us within 21 days of receipt. Failure to do so will be deemed acceptance that payment is due.
3.4 It is our normal practice to request that clients make arrangements to pay a proportion of their fee by monthly standing order. These standing orders will be applied to fees arising from work agreed in this letter of engagement for the current and ensuing years. Once we assess the amount of work and time involved, we would appreciate your agreement to pay a regular amount.
3.5 We reserve the right to charge interest on overdue accounts at the current rate under the Late Payment of Commercial Debts (Interest) Act 1998. We also reserve the right to terminate our engagement and cease acting if payment of any fees billed is unduly delayed. We accept settlement of fees by certain credit cards.
3.6 For companies, as directors, you guarantee to pay personally any fees (including disbursements) for services provided to the company that the company is unable to pay. This clause shall become effective in the event of a receiver or liquidator being appointed to the company or if the company is otherwise wound up.
3.7 If this firm ceases to act in relation to your company’s affairs, you agree to meet all reasonable costs of providing information to the company's new advisers. In particular, you agree to meet these costs where we are required by law to provide information to a successor firm.
4. Retention of and Access to Records
4.1 During the course of our work, we will collect information from you and others acting on your behalf and will return any original documents to you following the preparation of your financial statements and returns. You should retain these records for six years from 31 January following the end of the tax year to which they relate, or longer if HM Revenue and Customs enquires into your tax return.
4.2 While certain documents may legally belong to you, unless you instruct otherwise, we intend to destroy correspondence and other papers stored for more than seven years, other than documents of continuing significance. If you require retention of any document, you must notify us in writing.
5. Conflicts of Interest and Independence
5.1 We reserve the right to deliver services to other clients whose interests might compete with or be adverse to yours. We confirm that we will notify you immediately should we become aware of any conflict of interest involving us and affecting you unless prevented by confidentiality obligations. Where conflicts arise that cannot be managed in a way that protects your interests, we regret that we will be unable to provide further services.
5.2 If a conflict of interest arises, either between two or more of our clients or in the provision of multiple services to a single client, we will take necessary steps to address the conflict.
6. Confidentiality
6.1 We confirm that where you give us confidential information, we shall keep it confidential at all times, except as required by law or professional regulations.
6.2 We may, on occasion, subcontract work on your affairs to other tax or accounting professionals. Subcontractors will be bound by our client confidentiality terms.
7. Quality Control
7.1 As part of our commitment to quality service, our files are periodically subject to an independent regulatory or quality review. Our reviewers are experienced and professional and are bound by the same confidentiality requirements as our principals and staff.
8. Dealing with HM Revenue & Customs
8.1 When dealing with HM Revenue & Customs on your behalf, we are required to act honestly and take reasonable care to ensure that your returns are correct. You must provide us with all necessary information in a timely manner.
8.2 We will take account of steps and checks suggested by HM Revenue & Customs in their 'Agent Toolkits.' Although voluntary, we ensure that our quality control procedures match or enhance their recommendations.
9. Helping Us Provide the Right Service
9.1 If you have suggestions for improving our service or are dissatisfied, please contact Stephen Yeates, Managing Partner.
9.2 We will look into any complaints carefully and promptly.
9.3 We reserve the right to cancel our engagement immediately in case of:
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Insolvency, bankruptcy, or creditor arrangements.
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Failure to pay our fees by the due date.
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Breach of obligations not corrected within 30 days.
10. Applicable Law
10.1 This engagement letter is governed by English law. The Courts of England will have exclusive jurisdiction over any claims.
10.2 If any provision in this Standard Terms of Business is found invalid, other provisions remain unaffected.